This $3 Stock Is Setup To Double

This wireless solution provider has bottomed out, and begun to rebound.

At $3 owning this company could be like owning a call option that never expires!

Check it out here before its next big move up.

After years of declining revenues and losses, Smith Micro Software (SMSI), appears to have turned the corner to profitability.

I you look at the weekly chart below you’ll see a big move on huge volume at the beginning of March 2019.

This big week was a result of its last quarter earnings report. This report was the second in a row to beat expectations, and the first quarterly profit in at least at year.

Plus, it marked the first annual rise in revenues in many years!

The company’s fundamentals appear to be turning around and the stocks chart looks even more exciting!

As you can see in the chart above, this week will be the closing breakout of a year long base.

With a price tag of only $3.30, this a low-priced stock could double or triple just like a call option. However, you don’t have to worry about it expiring like an option.

I would look at this trades risk reward like I would an option trade. A 30% stop loss enables your stop to be under the 50-week average or the 200-day average around $2.30.

The entry price is between $3.40 and $2.70. Don’t pay over $3.40 and if you want to wait for a pull back, then look for any pullback to hold over $2.70. If it trades under $2.70 then it will be weaker than I expected, and I would not initiate any new trades.

The next earnings report is April 24th and I’m inclined to hold into that report. This could be the next catalyst that drives its next 50% jump to $5.

If you hold into earnings, make sure you have a position size that you can live with a 30% decline.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily